An independent Aite Group research report reveals that financial services firms must embrace an advanced data infrastructure to manage dynamic fixed income data across asset classes, instruments and regions.
The report, commissioned by Vhayu, the leader in streaming tick processing and persistence software, highlights the challenges firms now face as multiple sources generate ever more robust fixed income market data.
According to Aite, the expansion of electronic trading and diversification of fixed income products drive the need for firms to capture, store and analyze real-time and historical fixed income market data. Market participants must be able to access and store a wide variety of market, reference and pricing data to gain an accurate view of the fixed income trading landscape. By deploying a solution that provides this type of comprehensive view of data, firms will have the ability to customize and perform advanced analytics and intelligently publish the results to trading applications.
"As the fixed income landscape continues to evolve and expand, financial services organizations will need to employ a single platform that can properly map data from disparate sources, capture the data in real-time and provide access to historical data for testing and inclusion in strategy trading, " said Sang Lee, managing partner, Aite Group. "This data can then be used to strategically uncover event based fixed income opportunities and create new strategy models."
In response to these requirements and increasing customer demand to capture and store fixed income data, Vhayu introduced a fixed income version of its Velocity market data platform in February 2007. Velocity for Fixed Income TM (VFI) was designed as a single platform to capture, store and analyze real-time and historical market data as well as underlying reference data. VFI enables users to create custom real-time analytics such as spread bars and mid-weighted quote bars that can be stored and retrieved historically. By running the analytics in the engine, performance is significantly faster compared to performing the calculations in a spreadsheet or other front-end applications. VFI supports the Reuteeers Integrated Data Network (IDN) which has access to over 600 broker-dealer contributors and over 70 fixed income exchanges. In June 2005, Reuters entered into a relationship with Vhayu to distribute and support Vhayu Velocity as the Reuters Tick Capture Engine (RTCE).
"These findings confirm the benefits to be gained by deploying a comprehensive market data platform specifically designed to capture, analyze and store time series fixed income market data across asset classes. By leveraging a solution that provides a complete view of data, including critical reference data, firms can strategically customize their analytics and quickly publish them to the appropriate trading applications," said Jeff Hudson, CEO of Vhayu. "The ability to improve analytics and create superior valuation models to enhance trading strategies and rapidly respond to market changes will represent a significant competitive advantage."